6
lesson pretestMultiple Choice

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Question 6 • Financial Math

Massimo is planning a vacation to Japan and needs to convert 400 EUR (euros) to JPY (Japanese yen). His bank charges a 2% fee for all currency conversions. If the exchange rate is 1 EUR = 130 JPY, how many Japanese yen will he receive?

Answer
A
51 comma 200 JPY
B
52 comma 000 JPY
C
53 comma 040 JPY
D
50 comma 960 JPY

Explanation

First convert 400 EUR at 130 JPY per euro: 400 × 130 = 52,000 JPY. The 2% bank fee is 0.02 × 52,000 = 1,040 JPY, so Massimo receives 52,000 − 1,040 = 50,960 JPY. The correct choice is C, 50,960 JPY.

AI-written and checked against the verified answer.

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